UK in move to borrow £394bln to tackle recession
The United Kingdom (UK) is set to borrow £394 billion to deal with the economic impact of the coronavirus pandemic.
Its Chancellor of the Exchequer, the country’s national treasury, Rishi Sunak, stated this on Wednesday while presenting the 2020 spending review at the UK House of Commons.
He said the pandemic would result in the shrinking of the UK economy by 11.3 per cent and also lead to a rise in unemployment figures.
This is the highest ever amount the UK will borrow in its peacetime history.
Sunak said the office for budget responsibility (OBR) expects growth of 5.5 per cent in 2021 and 6.6 per cent the following year.
He added that British government has slashed its foreign aid budget to 0.5 per cent of national income as it looked for ways to help pay for the COVID 19-induced economic crisis.